A Fuller View

David Fuller is a
true global investor focusing worldwide for his ideas. From his London
home, he offers an always fresh perspective that sets him apart from
most US advisors. Here, he looks at his favorite long-term
markets-Korea
and India-as
well as currencies and gold.

"My personal investment portfolio is
currently fully invested and I never withdraw any money. Needless to say every investor should base their own portfolio on
what is appropriate for themselves, given their assets,
requirements and not least temperament.
We are all different. Along with Japan, Korea is my favourite
industrial-based developed country stock markets for the very long term. South
Korea is a country that is currently regaining confidence in itself, not unlike
Japan. However, I feel that the Koreans are further along this path.

"So how can one participate in Korea? For
US investors, there is an iShares MSCI South Korea (EWA ASE), as well as the Korea Fund (KF NYSE) and Korea Equity Fund (KEF NYSE). There has been a pullback in the
Korean market recently, presenting another buying opportunity. My only reservation
is that I expect to see a global stock market shakeout in 2006, which would
present an even better buying opportunity. Consequently I will proceed cautiously.
Thus, I expect a significant sell-off for global stock markets in 2006, but the light
at the end of that tunnel will be a great buying opportunity.

"On a short-term basis, the Indian stock
market is a bit expensive relative to the
Asian region. Further, growth in profits is likely to slow somewhat
next year. On a very long-term view, I maintain that India is the
best growth and investment story on the planet. On a 20-40-year view, I think India will provide
the kind of jaw-dropping, eyebrow-raising, mouth-watering, scarcely
comprehensible performance that would make even Warren Buffet turn green with
envy.

"We will see several bubbles along the
way. But I want my investment portfolio to be permanently overweight in India. I
hope to find patience and retain my nerve during setbacks, which will be buying
opportunities. India is the real deal, for reasons previously discussed at
length and available via the Search facility, and remains my favourite stock
market for the very long term.

"As for currencies, I would not be
surprised to see the US Dollar Index test 80 next year. Why? Continued upward
scope for US short-term interest rates has mostly been discounted; the one-off
tax-advantageous repatriation of overseas funds by US corporations has also been
largely discounted; confidence in the US dollar's long-term fundamental position
is understandably skin deep, and projections for lower interest rates in
Euroland, the UK, and other countries have been shelved by central bank concern
over inflation.

"Which currencies will appreciate most
against the US dollar? Logically it would be resources, high-yielding, and Asian dynamic growth currencies. However none of
the Asian currencies are allowed to float freely. Consequently, I expect that the
greatest upward pressure will be on high-yielding, developed country resources currencies
such as the Australian, Canadian, and New Zealand dollars. In addition, the
euro and Swiss franc could see among the better rallies initially because so many forex
traders have shorted these currencies recently. Also, sterling should rebound from the lower
side of its range against the US dollar."